The Hawaii housing market in 2024 has shown interesting trends that reflect the unique and competitive nature of this region's real estate. This comprehensive analysis will delve into the current housing trends, prices, sales performances, supply and demand, and whether Hawaii remains a seller's market and a viable option for real estate investors.

How is the Hawaii Housing Market Doing in 2024?

Current Housing Trends in Hawaii

Home Prices

Home prices in Hawaii continue to climb, maintaining the state's reputation for high property values. Let's break down the specifics:

• Average Home Price: As of May 2024, the average home value in Hawaii stands at $856,644, reflecting a 2.5% increase over the past year according to Zillow.
• Median Sales Price: The median sales price for homes in Hawaii is approximately $735,000 (Houzeo). This figure suggests a steady appreciation in property values.
• Median List Price: The median list price has also increased, showcasing the high demand for homes in this tropical paradise.

Are home prices dropping? Contrary to some expectations, home prices have not dropped. In fact, the market sees steady growth, keeping Hawaii as a premium real estate location.

Statistic	Value (2024)
Average Home Price	$856,644
Median Sales Price	~$735,000
Median List Price	N/A

Hawaii's housing market thrives on limited land supply and robust demand, particularly from both local and international buyers seeking luxury and scenic properties.

Home Sales

Recent data shows dynamic activity in the Hawaii housing market. Here's an insight into recent home sales:

• The number of homes sold in May 2024 rose by 4.4% compared to the previous year, indicating a positive trend in home sales (Redfin).

Comparison with the same month last year reveals an increase in transactions, demonstrating a resilient market despite economic pressures.

Housing Supply and Demand

In May 2024, the housing supply in Hawaii saw a notable increase by 18.4% year-over-year, with 6,504 homes available for sale (Redfin). Current market trends indicate growing inventory yet sustained demand:

• Supply: Although the number of homes for sale has increased, this is still insufficient to meet the high demand.
• Demand: The enduring allure of Hawaii continues to drive demand, particularly for luxury and oceanfront properties.

Is Hawaii a Seller's Real Estate Market?

Indeed, Hawaii remains a seller's market in 2024. Several factors contribute to this status:

• Limited Land Availability: Hawaii's geographical constraints result in limited land for new developments, maintaining high property values.
• Strong Demand: Both local buyers and international investors seek to own a piece of this tropical paradise, often leading to competitive bidding.
• Investment Potential: Investors are drawn to Hawaii's high rental yields, especially in popular tourist destinations.

For sellers, this means properties are likely to sell quickly and at a premium. For buyers, it requires strategic planning and, often, swift decision-making to secure desired properties.

Is Hawaii a Good Real Estate Market for Investors?

Hawaii presents attractive opportunities for real estate investors due to:

• High Rental Yields: Tourist destinations such as Maui, Oahu, and Honolulu offer lucrative vacation rental markets.
• Property Appreciation: Historical data shows consistent property value appreciation, making it a stable investment.
• Market Stability: Despite fluctuations in the broader economy, Hawaii's unique allure maintains steady demand.

Is it Expensive to Live in Hawaii?

Living in Hawaii does come with a higher cost of living compared to many other regions. Some factors include:

• Housing Costs: The high median price for homes.
• Goods and Services: Due to its remote location, many goods are imported, increasing daily living costs.
• Utilities: Costs for utilities can be higher due to the tropical climate necessitating air conditioning and other factors.

Residents and potential buyers should weigh these costs against the lifestyle and amenities that living in Hawaii provides.

To sum up, the Hawaii housing market in 2024 exhibits robust demand, rising home prices, and promising opportunities for both sellers and investors. While the cost of living remains high, the unique benefits of living in this tropical paradise continue to drive interest and investment.

Hawaii Housing Market Predictions

The Hawaii housing market is currently experiencing a notable trend. According to Zillow, the average home value in Hawaii stands at $853,685, marking an increase of 2.2% over the past year. Homes in Hawaii typically go pending in approximately 25 days.

Median Sale to List Ratio

As of May 31, 2024, the median sale to list ratio in Hawaii is 0.988. This ratio indicates that, on average, homes are selling very close to their list prices.

Median Sale Price

The median sale price for homes in Hawaii as of May 31, 2024, is $729,667. This figure provides insight into the typical transaction amount for properties within the state.

Median List Price

As of June 30, 2024, the median list price for homes in Hawaii is $799,000. This number reflects the middle point of home prices currently listed on the market.

Percent of Sales Over List Price

On May 31, 2024, approximately 21.1% of home sales in Hawaii were for amounts exceeding the list price. This suggests a competitive market where buyers are often willing to pay more than the asking price.

Percent of Sales Under List Price

Conversely, 57.1% of home sales in Hawaii were under the list price as of May 31, 2024. This indicates that a majority of sellers are negotiating down from their initial listing prices.

Hawaii MSA Housing Forecasts

Urban Honolulu, HI

The forecast for Urban Honolulu shows a slight decrease in home values. From May 31, 2024, to July 31, 2024, a decline of -0.1% is expected. By April 30, 2025, this decline is projected to be more pronounced at -4.5%.

Hilo, HI

In Hilo, the housing market is anticipated to experience minor fluctuations. A small increase of 0.3% is forecasted by July 31, 2024, followed by a decrease of -0.1% by April 30, 2025, culminating in an overall decline of -0.4%.

Kahului, HI

Kahului is expected to see a modest increase of 0.3% by July 31, 2024. However, by April 30, 2025, home values are forecasted to decrease by -0.6%.

Kapaa, HI

Kapaa's housing market is predicted to follow a similar pattern. An initial increase of 0.4% by July 31, 2024, is expected, with a subsequent decline of -0.3% by April 30, 2025, resulting in an overall slight decrease of -0.2%.

Conclusion

The Hawaii housing market exhibits a blend of stable home values and varied regional forecasts. While the state overall shows a slight appreciation in home values, specific areas like Urban Honolulu are expected to see more significant declines. Potential buyers and investors should carefully consider these metrics and regional forecasts when making decisions.

Why is Hawaii So Expensive to Buy a House?

The high cost of buying a house in Hawaii can be attributed to several factors:

• Desirable Location: Hawaii's stunning natural beauty and ideal climate make it a highly sought-after location, driving up demand for real estate.
• Geographic Constraints: Hawaii's limited land area and geographic constraints, such as the ocean and volcanic landscapes, limit the supply of available land for development, which can increase property prices.
• High Cost of Living: Hawaii's relatively high cost of living extends to the real estate market, affecting both property values and living expenses.
• Tourism and Investment: Hawaii's strong tourism industry and attractiveness to investors contribute to increased demand for properties, further impacting prices.

Tips for Buying a Home in Hawaii

Purchasing a home in Hawaii, with its breathtaking landscapes and unique lifestyle, is a dream for many. However, this dream also comes with distinct considerations due to the state's particular housing market dynamics. Whether you're a local looking to invest or a newcomer seeking your piece of paradise, these tips will guide you through the process.

Key Tips

Research and Budget: Hawaii's real estate market is diverse, with variations in prices across islands and neighborhoods. Research property values, cost of living, and potential expenses such as property taxes and maintenance. Establish a budget that aligns with your financial situation and goals.

Local Real Estate Agents: Partnering with a knowledgeable local real estate agent is essential. They understand the nuances of the market, such as Hawaii's unique regional trends, zoning regulations, and potential challenges. Their expertise can help you make informed decisions.

Consider Property Types: Hawaii offers an array of housing types to suit different preferences. Choose between single-family homes, condos, townhouses, or even co-op housing based on your lifestyle, family size, and long-term plans.

Location Matters: The islands of Hawaii offer diverse neighborhoods, each with its own character. Consider factors like proximity to beaches, schools, workplaces, and amenities. Research local communities to find a location that resonates with your lifestyle.

Financing and Pre-Approval: Secure mortgage pre-approval before you begin house hunting. This not only sets a clear budget but also demonstrates your seriousness to sellers, making your offers more competitive.

Inspections and Due Diligence: Given Hawaii's susceptibility to natural disasters like hurricanes and tsunamis, thorough property inspections are crucial. Engage professionals to assess potential risks and ensure you're making an informed decision.

Understand Leasehold Properties: In Hawaii, some properties are leasehold, meaning you own the building but lease the land it sits on. Understand the terms of the lease, its duration, and any potential implications for resale value.

Tips for Selling a Home in Hawaii

Selling a home in Hawaii can be both a rewarding and challenging experience. The allure of Hawaii's natural beauty combined with its unique housing market dynamics requires careful planning to attract potential buyers and maximize your property's value.

Key Tips

Pricing Strategy: Collaborate with a local real estate agent to determine a competitive listing price. Overpricing can deter buyers, while underpricing may lead to missed opportunities. The agent's insights into recent sales and market trends are invaluable.

Enhance Curb Appeal: Hawaii's stunning surroundings set high expectations for property aesthetics. Invest in landscaping, fresh paint, and exterior upgrades to create an inviting first impression.

Highlight Unique Features: Emphasize what makes your property special. Whether it's panoramic ocean views, a private garden, or proximity to attractions, showcase these features in your listing.

Stage Thoughtfully: Staging your home can help potential buyers visualize themselves living there. Clear clutter, rearrange furniture for optimal flow, and use neutral decor to create a welcoming atmosphere.

Online Presence: In the digital age, a strong online presence is essential. Utilize professional photography and well-crafted descriptions to showcase your property's beauty across various listing platforms.

Flexible Showings: Hawaii's real estate market attracts buyers from various time zones, including international ones. Be open to accommodating flexible showing schedules to maximize exposure to potential buyers.

Local Insights: Enlist the expertise of a local real estate agent who understands Hawaii's market intricacies. They can provide insights into buyer preferences, market trends, and effective negotiation strategies.

The Different Types of Housing in Hawaii

Hawaii's housing market offers a diverse range of property types, catering to various lifestyles and preferences. Whether you're a potential buyer or simply curious about the local real estate landscape, understanding these housing options is key.

Housing Options

Single-Family Homes: A quintessential choice, single-family homes offer privacy, a yard, and a traditional living experience. They are well-suited for families or those seeking more space.

Condos: Condominiums provide a blend of ownership and shared amenities. They're popular among those who prefer a low-maintenance lifestyle, often offering facilities like pools and gyms.

Townhouses: Townhomes combine elements of single-family homes and condos. With individual ownership of a unit within a shared structure, they offer both space and community aspects.

Cooperative Housing: In co-op housing, residents collectively own shares in the housing complex. Each shareholder has the right to live in a specific unit, fostering a sense of community.

Leasehold Properties: Some properties in Hawaii are leasehold, meaning the buyer owns the building but leases the land. This can affect property values and ownership terms, requiring thorough understanding.

The Different Neighborhoods in Hawaii

Hawaii's islands are a tapestry of unique neighborhoods, each with its own distinct charm and lifestyle. Exploring these neighborhoods can provide valuable insights for residents and potential homebuyers.

Exploring Neighborhoods

Honolulu: Hawaii's capital city offers a blend of urban convenience and island beauty. Waikiki is famous for its vibrant energy and sandy beaches, while Manoa boasts lush surroundings and a strong sense of community.

Kailua: Located on Oahu's windward side, Kailua is cherished for its laid-back atmosphere, stunning beaches, and a vibrant local scene.

Kihei: Situated on Maui, Kihei boasts beautiful beaches, a variety of dining options, and a relaxed lifestyle that resonates with both residents and visitors.

Wailea: Also on Maui, Wailea is renowned for its luxury resorts, upscale shopping, golf courses, and an overall upscale lifestyle.

North Shore (Oahu): The North Shore is synonymous with world-class surfing and offers a rustic charm, lush landscapes, and a tight-knit community.

Kona: On the Big Island, Kona blends history, culture, and outdoor activities. It features a range of shops, dining options, and a distinctive island vibe.

Princeville: Nestled on Kauai's north shore, Princeville offers stunning vistas, golf courses, and access to iconic sites like Hanalei Bay.

The Hawaii housing market, influenced by a variety of economic and local factors, is undergoing shifts that offer both opportunities and challenges for potential investors and homeowners. Monitoring trends, staying informed about the forecast, and seeking expert guidance are essential steps for making informed decisions in this dynamic market. As with any real estate investment, careful consideration, due diligence, and a long-term perspective are crucial for success in navigating the ever-changing landscape of Hawaii's housing market.

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